Raunaq International Secures ₹18.10 Crore Raw Water Pipeline Project from Ambuja Cements

Industrial infrastructure and engineering player Raunaq International Limited (formerly known as Raunaq EPC International Limited) has secured two distinct domestic work orders from cement major Ambuja Cements Limited. The twin contracts, which aggregate to a total consideration of ₹18.10 crore (exclusive of taxes), involve engineering works for raw water pipelines and associated equipment at Ambuja Cements' ACL Maratha plant in Maharashtra.

Segmented Project Breakdown and Commercial Valuation

The contract footprint is located entirely at Ambuja Cements' establishment at Uparwahi (Udanwahi), within the Korpana Taluka of the Chandrapur district in Maharashtra. The commercial scope is split across two main work packages:

Order Number 1 (Supply & Execution): Covers the complete supply, erection, testing, and commissioning of the raw water pipeline network and its allied equipment blocks. The baseline price for this segment is fixed at ₹10.85 crore.

Order Number 2 (Pure Erection Mandate): Governs the technical erection, testing, and commissioning operations of parallel raw water systems at the same facility. This portion is valued at ₹7.25 crore.

Project Timeline, Milestones, and Risk Framework

The contracts were initially issued via a Letter of Award on May 11, 2026, which marks the technical effective date of the transaction. Following detailed discussions regarding subsequent purchase order clauses, active site mobilization and structural engineering works commenced on July 1, 2026.Both packages carry a strict ten-month completion window starting from the original May effective date, meaning final testing and engineering compliance turnarounds must conclude by March 2027.The operational risk and protection parameters established between Raunaq International and Ambuja Cements dictate several financial backstops:

Liquidated Damages: Delays in milestone handovers will subject the engineering firm to liquidated damages capped at a maximum ceiling of 5% of the individual purchase order values.

Defect Liability: The pipeline engineering work is bound by a comprehensive 12-month defect liability period, running from the date of successful commissioning.

Security Commitments: Raunaq International will furnish an Advance Payment Bank Guarantee covering 10% of the basic contract pricing, along with a separate Performance Bank Guarantee scaled at 5% of the base contract value. The performance guarantee will carry an extended three-month claim buffer past the expiration of the defect liability cycle.

Contractual Payment Architecture

The payment disbursements for the infrastructure rollout will follow structured Running Account (RA) invoicing schedules backed by initial mobilizations:

Supply and Erection Invoicing (Order 1): Begins with a 10% basic price mobilization advance. Progress billing will release up to 85% of the total supply value on a pro-rata basis tied to material delivery and installation. The final 5% retention chunk will be unlocked upon total project sign-off.

Pure Erection Invoicing (Order 2): Matches the 10% advance model but divides the remaining capital across an 80% pro-rata progress schedule linked to ongoing site erection, followed by a specific 5% disbursement upon the successful completion of hydrostatic testing. The final 5% retention line is held until overall commissioning.

Shares of Raunaq EPC International Ltd was last trading in BSE at Rs. 26.76 as compared to the previous close of Rs. 25.57. The total number of shares traded during the day was 2379 in over 19 trades.

The stock hit an intraday high of Rs. 26.84 and intraday low of 24.31. The net turnover during the day was Rs. 62659.00.

Source : Equity Bulls

Keywords

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